ABB Electrification drives growth in the US

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Cary, North Carolina
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2019-07-10

Investment of up to $39.9 million

Creation of ~400 jobs in North Carolina

Expansion to meet growing customer demand

ABB is optimizing and expanding its Electrification business in the United States to meet growing demand for medium-voltage products and systems that are used to ensure, safe, smart and sustainable electrical distribution. ABB will expand its Mebane, North Carolina facility and will discontinue production at its Lake Mary, Florida unit.

ABB Electrification Product Showroom, Mebane, North Carolina

This expansion goes hand in hand with ABB’s ongoing integration of the former General Electric Industrial Solutions (GEIS) in the US with the clear focus on improving profitability, reducing operational costs and driving efficient production. This will support the Electrification business’ progress toward its mid-term target margin corridor of 15 to 19 percent. Through the acquisition of GEIS, ABB can provide a complete line of electrification products to its US customers.

“The optimization of the manufacturing footprint for our US Electrification business will allow ABB to meet growing customer demand and strengthen our position in North America,” said Tarak Mehta, President of the Electrification business. “The US remains ABB’s largest customer market and we are proud to have invested $14 billion across the whole of ABB’s US interests since 2010, tripling our local footprint.”

In Mebane, North Carolina, ABB is planning to invest up to $39.9 million to build a 200,000 square foot expansion and upgrade machinery that will increase factory capacity of its medium-voltage product lines by June 2020. As part of this plan, ABB will transfer its Lake Mary, Florida, manufacturing by the third quarter of 2020. This will bring together production of all medium-voltage products in the US into one facility for customers.

With this investment in advanced manufacturing, Mebane will provide customers with enhanced delivery performance, safety and quality. This consolidation will also provide customers with a fully integrated experience with production, engineering, quality and Factory Acceptance Testing teams located at one site. This expansion is backed by an additional $4.3 million in incentives from the State of North Carolina over 12 years with ABB’s commitment to create 403 jobs in five years.

The move will impact approximately 200 employees at the Lake Mary facility, many of whom will be offered employment in North Carolina or other positions within ABB. In 2020, ABB will retain approximately 100 employees in the Lake Mary area to carry out non-manufacturing activities. ABB is offering support to employees, including identifying open positions in Mebane and other ABB locations as well as outplacement and severance benefits.

In March, ABB announced that it is investing $36 million to expand its Senatobia, Mississippi facility in advanced manufacturing, creating an additional 50 jobs. This expansion will strengthen the company’s capabilities for full production of the low-voltage ABB Tmax XT circuit breakers to support growth in customer orders as well as lead times and delivery needs. ABB opened Senatobia in 2016, creating 300 jobs.

With over 24,000 employees in more than 100 communities, ABB is a leader in the industrial technology revolution in the United States. ABB's Electrification business has always been at the forefront of innovative electrification and today is writing the future of safe, smart and sustainable electrification. The strategic role of electrification is growing, with urbanization and the world forging ahead to create a lower-carbon future, which ABB is supporting with digitally connected, ABB Ability™-enabled solutions and services.

ABB (NYSE: ABB) is a pioneering technology leader with a comprehensive offering for digital industries. With a history of innovation spanning more than 130 years, ABB is today a leader in digital industries with four customer-focused, globally leading businesses: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation, supported by its common ABB Ability™ digital platform. ABB’s market-leading Power Grids business will be divested to Hitachi in 2020. ABB operates in more than 100 countries with about 147,000 employees. www.abb.com